Under California State law, each governing body (City/Town Council or Board of Supervisors) of a local government in California is required to adopt a comprehensive, long-term general plan for the physical development of the municipality. A municipality may prepare and adopt a Specific Plan to help implement the municipality’s General Plan for a particular geographic subarea of the community. A Specific Plan is incorporated into the General Plan and provides more detailed land use information and establishes the primary means of development guidance within the project area than occurs in the community’s General Plan. By law, Specific Plans must include, among other items:

• Explanation of the relationship to and consistency with the General Plan;• Location and distribution of land uses, including the amount of each type and the development densities and intensities;• Development standards and guidelines for each land use;• Transportation circulation, other infrastructure, and public facilities to support the planned level of development; and• Implementation strategies, including financing of infrastructure.

Once a Specific Plan is adopted, development applications for the area are reviewed by the municipality for consistency with the Specific Plan as well as other applicable governing land use documents in the community.

A draft Specific Plan for the North 40 Area was prepared in 1999, but was not adopted. In 2010, the Town Council adopted the 2020 General Plan. The 2020 General Plan required the preparation of a Specific Plan for the North 40 Area and included goals, policies, general guidelines, and implementation strategies to inform the preparation of the Specific Plan.

The North 40 Specific Plan Advisory Committee (N40 AC) was established by the Town Council on March 7, 2011. The goal of the N40 AC was to serve as an Advisory Committee to the Town Council and the Planning Commission through coordination with staff and interaction with the community. The N40 AC consisted of nine members from the General Plan Committee, and up to six members of the community from the General Plan Update Advisory Committee. The N40 AC began meeting in March of 2011 and concluded their work on October 15, 2013. All meetings were open to the public and community members provided input at the meetings and in writing. The N40 AC considered all public comments in its deliberations. The N40 AC meeting minutes and reports are available here.

An Environmental Impact report (EIR) for the Draft Specific Plan was prepared and circulated for public comment in early 2014. The document received 35 comments. The Planning Commission considered the Draft Specific Plan and EIR at two meetings in July and August of 2014 at which 25 people provided public testimony. The Commission also considered all written public comments as documented in the reports available on the North 40 website. The Planning Commission deliberated on all of the information and public comments, and forwarded its recommendations to the Town Council for the Council’s consideration which occurred on August 13, 2014.

The Town Council considered the Draft Specific Plan and EIR on eight occasions between September 2014 and June 2015. During these proceedings, the public had multiple opportunities to submit written comments and provide verbal testimony as documented on the North 40 website, Council videos, and written reports and summaries. The Final EIR was certified on January 5, 2015 and the North 40 Specific Plan was adopted on June 17, 2015, incorporating the modifications approved by the Council based on its deliberations, consideration of public testimony, Planning Commission recommendations, and all other information contained in the record.

Based on the work of the North 40 Advisory Committee (N40 AC), Planning Commission, and Town Council, the adopted North 40 Specific Plan contains a Vision and Guiding Principles that provide overarching guidance for development of the North 40 Specific Plan area, as follows:

Vision

The North 40 reflects the special nature of our hometown. It celebrates our history, agricultural heritage, hillside views, and small town character. The North 40 is seamlessly woven into the fabric of our community, complementing other Los Gatos residential and business neighborhoods. It is respectful of precious community resources and offers unique attributes that enrich the quality of life of all of our residents.

Guiding Principles to Achieve this Vision

• The North 40 will look and feel like Los Gatos. • The North 40 will embrace hillside views, trees, and open space. • The North 40 will address the Town’s residential and/or commercial unmet needs. • The North 40 will minimize or mitigate impacts on town infrastructure, schools, and other community services.

The approval of the North 40 Specific Plan amended the zoning of the property to the tailored designation of North 40 Specific Plan. The Specific Plan provides a maximum allowable development capacity for the entire Specific Plan area of 270 residential units and 501,000 square feet of commercial uses (additional details are provided on pages 2-6 thru 2-10 of the Specific Plan). The Specific Plan also requires 30% open space, design elements to reflect the orchard heritage of the properties, new bicycle and pedestrian paths as well as roads to serve the development, and improvements to nearby streets (e.g., Lark Avenue and Los Gatos Boulevard) to accommodate increased traffic.

The Council reduced the development amount from the recommended quantities by the North 40 Advisory Committee (364 housing units and 580,000 square feet of non-residential development). The Planning Commission and Town Council meeting minutes and reports are available here.

The Mitigation Monitoring and Reporting Program specifies the required mitigation measures that were included in the EIR for the specific Plan. Mitigation measures are required for aesthetics, air quality, biology, cultural resources, hazards and hazardous materials, hydrology and water quality, noise, transportation and traffic, and utilities. These can be found here.

The TIA analyzed the cumulative traffic impacts associated with the North 40 in the context of these pending or ongoing development applications. The TIA includes any mitigation measures that are proposed or required as a result of these projects and analyzed the required mitigation measures associated with the North 40 Specific Plan to reduce potential traffic impacts to a less than significant level pursuant to State law regarding environmental analysis, the California Environmental Quality Act (CEQA).

In order to comply with the Town’s certified Housing Element, the North 40 must include 13.5 acres of residential development at 20 units/acre. Reducing the density to less than 20 units/acre or reducing the number of acres to less than 13.5 would conflict with the Town’s Housing Element and would require the Town to rezone other properties in Town at 20 units/acre.

Yes, all California municipalities are required by Article 10.6 of the Government Code (Sections 65580-65590) to adopt housing elements as part of their general plans. Housing element law, enacted in 1969, mandates that local governments adequately plan to meet the existing and projected regional housing needs of all economic segments of the community.

The housing element law is the State’s primary market-based strategy to increase housing supply, affordability, and choice. The law recognizes that in order for the private sector to adequately address housing needs and demand, local governments must adopt land use plans and regulatory schemes that provide opportunities for, and do not unduly constrain, housing development. By law, every jurisdiction must plan for its fair share of new housing for all income segments of the community.

The housing element process begins with the California Department of Housing and Community Development (HCD) and Department of Finance (DOF) identifying the total housing need for the San Francisco Bay Area for an eight-year period. The Association of Bay Area Governments (ABAG) then distributes this need to local governments based on a methodology developed by representatives of the nine County Bay region and adopted by the ABAG Executive Board.. The methodology considered existing local General Plans, projected job growth, transit locations, and other factors. As a result, housing policy in the State rests largely upon the effective implementation of local general plans and, in particular, local housing elements. Housing element law also requires the HCD to review local housing elements for compliance with State law and to report its written findings to the local government.

The Town Council appointed the General Plan Committee (consisting of Planning Commissioners, Town Council members, and appointed community representatives) and additional community representatives to a Housing Element Advisory Board (HEAB). All of its meetings were open to the public with opportunities for verbal and written testimony. The HEAB considered multiple locations for the new housing as well as significant technical issues. After considering public input and a variety of issues, the HEAB recommended that one of the sites for new housing should be the North 40.

The Planning Commission conducted its required public hearings on the draft Housing Element and also made its recommendations. The Town Council considered both sets of recommendations as well as additional public testimony when it made the final decision to adopt the housing element. The Council’s final decision on planned locations for new housing included the North 40. All of the deliberations and materials regarding the Housing Element can be found here.

The Town’s Housing Element required adoption of the North 40 Specific Plan with certain development assumptions in order to meet projected housing needs. The Housing Element (Action HOU 1.7) required the Town to rezone 13.5 acres within the North 40 Specific Plan Area to comply with a minimum density of 20 units per acre within three years of the Housing Element adoption and established by-right development for these units. The Housing Element was adopted by the Town Council in May 2015; adoption of the North 40 Specific Plan implemented the required zone change in June 2015.

No, the North 40 Specific Plan Area was not designated as an AHOZ site within the Housing Element. The North 40 Specific Plan provided development standards and guidelines for both the commercial/mixed use and the residential development within the Specific Plan Area.

Yes, by State law the Specific Plan must be consistent with the General Plan. The Specific Plan provides more detailed design, development, and policy requirements than the General Plan. The Specific Plan implements the General Plan by providing more particular direction tailored to the North 40 Area.

The housing element must include a detailed land inventory and analysis including a site specific inventory listing properties, zoning and general plan designation, size, and existing uses to accommodate the jurisdiction’s share of the regional housing needs.

In response to the Town’s draft housing element, the HCD determined that the Town did not demonstrate adequate sites, appropriately zoned to meet the jurisdictions share of the regional housing needs. In order to obtain certification of the Town’s housing element from HCD, the Town had to designate sites including providing zoning that allows owner-occupied and rental multi-family uses “by-right” with minimum densities and development standards.

The phrase "use by right” shall mean the local government's review of the owner occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code [CEQA]. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of [CEQA]. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.25. The concept is to require the community to identify sites that are available for development with affordable housing without any discretionary review, 25 §65589.5(f) permits a local agency to require developments to comply with development standards consistent with meeting the quantified objectives and to impose fees to provide services and facilities.

Yes. The North 40 Specific Plan and EIR anticipated additional traffic as a result of development within the Specific Plan Area and required mitigation measures to appropriately reduce these impacts. The delays at all 31 studied intersections, along with impacts of the proposed project with and without the required mitigation measures are provided in the TIA

As required by the EIR, the Specific Plan requires roadway and intersection improvements to be completed within each phase of the Specific Plan implementation. Specific traffic mitigations can be found in the Draft Environmental Impact Report here and includes:

• Widening of Lark Avenue to accommodate additional traffic lanes, and • Modifications to Los Gatos Boulevard within the existing right-of-way, both south and north of Lark Avenue.

Additionally, the Specific Plan required that each phase of proposed development provide a traffic analysis to determine that the traffic and impacts studied within the EIR are not intensified with a proposed project within the Plan Area.

The North 40 Specific Plan Area, when adopted, included 38 parcels and even more property owners. Given the size and complexity of the ownership, it is highly unusual that all 40 plus acres could be developed in one phase. This is because of existing businesses and residents, the need to build new infrastructure on the property, and other considerations. Phasing recognizes the property rights of existing land owners within the Plan Area and allows each development to adjust to current needs and improved design standards.

The Specific Plan provides specific parameters for all new development proposals within the Plan Area. All development applications are required to comply with the standards, guidelines, and requirements of the Specific Plan. Current and future property owners are held to the same standards.

The North 40 Specific Plan included both private and public schools as permitted uses within the North 40 Specific Plan Area. Public schools are regulated by the State as to proximity to certain uses such as freeways and gas stations. Additionally, the Leroy F. Greene School Facilities Act of 1998, or Senate Bill 50 (SB 50), restricts the ability of local agencies, such as the Town of Los Gatos, to deny land use approvals on the basis that public school facilities are inadequate. SB 50 authorizes school districts to levy developer fees to finance the construction or reconstruction of school facilities to address local school facility needs resulting from new development. SB 50 establishes the base amount of allowable developer fees for school impacts. In January 2016, the State Allocation Board (SAB) increased Level 1 Fees to $0.56 per square foot of enclosed and covered space in any commercial or industrial development, and $3.48 per square foot for residential development (SAB, 2010). Public school districts can, however, impose higher fees than those established by the SAB, provided they meet the conditions outlined in the act.

Developers and School Boards can voluntarily consider additional arrangements. For the southern portion of the North 40 Area, the Los Gatos Union School District Board entered into an agreement with the prospective developers regarding school issues. It can be viewed here.

The right of the government to obtain private land for public purposes is known as eminent domain, and this right derives from federal and state constitutions and related laws. The power of eminent domain allows the government to take private land for public purposes only if the government provides fair compensation to the property owner.

The process through which the government acquires private property for public benefit is known as condemnation. Most condemnation proceedings turn on the value of the property at issue. How much a piece of property (or an interest in property) is worth depends on many factors. The zoning of the property and the value of surrounding properties provide useful guidance for the calculation. The many unique characteristics of a property often result in a different estimation of value between the property owner and the government. In addition to an appraiser and an attorney, each side may have additional experts, such as engineers and architects. Factors that are considered in property valuation include: its size, how it is zoned, what kinds of buildings and roads are on it, what it's currently being used for, what it could be used for, how accessible it is, what other businesses or land uses are adjacent or nearby, and whether there are tenants or other leaseholders involved.

Given the value of the North 40 with the adopted Specific Plan and zoning, it is unlikely that the Town would have the resources to purchase the land for fair market value under these processes even with corporate donations and other tax revenue.

The Town of Los Gatos does not regulate no-fault eviction or relocation assistance. Under state law, eviction notice requirements are governed by the agreement between the landlord and tenant and there are relocation assistance laws that may or may not apply depending on each individual circumstance. The Town does work to improve and preserve the supply and quality of existing rental and ownership housing opportunities that are available for residents and employees of local businesses. When new developments are approved by the Town, the Below Market Price (BMP) Housing Ordinance adopted in 1979 requires developers to offer a minimum percentage of the units so they are affordable to lower and median income households. Hello Housing (www.hellohousing.org) is the administrator of the Town's Below Market Price (BMP) Housing Program.

Yes, the Town can approve less than 400,000 square feet of commercial uses, consistent with the Specific Plan. All development applications are evaluated based on their conformance with the Specific Plan as well as other factors.

The CUP requirement in Table 2-1 is for a health club, and an individual Yoga Studio would not be considered a health club. For purposes of Town zoning, a Yoga Studio is considered Instruction/Classes and would require a CUP anywhere in the Town, including the North 40 Specific Plan Area.

Under the Town Code outside of the Specific Plan area, all uses involving the service of alcohol require a CUP. Because the Specific Plan establishes zoning rules specific for the North 40 area, restaurants offering alcoholic beverage service do not require a CUP. In contrast, under the Specific Plan, a standalone bar requires a CUP.

The Specific Plan does not contain a maximum amount of restaurant space; however, a proposed development needs to demonstrate its consistency with the Specific Plan to address unmet needs of the Town and create a vibrant neighborhood in the northern portion of Los Gatos. One type of commercial use for all 400,000 square feet (e.g., all restaurants) would not be consistent with Policy LU3 that states “for a mix and size of uses to promote the creation of a lively, walkable neighborhood” and Policy LU11 that states “proposed uses should complement the existing balance and diversity of businesses located along Los Gatos Boulevard and in Downtown Los Gatos.”

The Planning Commission and Town Council would need to hold noticed public hearings with the express purpose of repealing the Specific Plan. To maintain an adequate Housing Element under State law, at those same hearings, the Town would need to identify and zone replacement site(s) for the 270 units that would be removed by such repeal.

The Town Council can repeal or amend the North 40 Specific Plan. Chapter 6.5 in the Specific Plan specifically addresses the process for amendments. Any application that has been deem complete under the permitting streamlining act or subdivision map act would not be subject to the repeal or amendments that were made by Council.

The Town is not a party to the sale of property and cannot comment on any contingencies between private parties. Implementation of the Specific Plan is not dependent on a specific applicant. The Town evaluates applications based on their own merits and the requirements of the Town’s governing land use documents (i.e., General Plan, Specific Plan, Zoning, etc.).

The Specific Plan requires a minimum of 30% open space within each application for development. This is greater than the current requirement for commercial or multi-family developments in Town at this time. Town Code does not currently contain a requirement for a minimum amount of Open Space for commercial developments.

School District boundaries typically do not follow Town boundaries. The properties along Guadalupe Mines Road are in the City of San Jose and within the Los Gatos Union School District. The District’s boundaries were determined prior to the development of the homes.

The Town typically has one Planner assigned to each application that is submitted. The Planner works collaboratively with other Town Departments and outside agencies in the evaluation of the application. In addition, the Planning Manager and/or the Community Development Director provide supervision, guidance, and other technical support in the evaluation of all Planning applications. The project Planner does not work in isolation.

The Town entered into an Agreement with Grosvenor with the purpose of Grosvenor funding the public planning process for the preparation of the Specific Plan and related documents. With this funding, the Town led all of the Advisory Committee meetings, managed the consultant teams that wrote the Specific Plan and EIR respectively, wrote all staff reports, and handled all public hearings. Grosvenor’s funding only provided the resources to prepare a Specific Plan.

Yes, the Planning Commission will evaluate the pending applications in light of the Specific Plan and make recommendations to Town Council regarding the approval, modification, or denial of the applications.

Both the State Subdivision Map Act and the Permit Streamlining Act have mandatory timeframes for development application decisions that must be complied with. Additionally, the Specific Plan anticipated phasing of the development given the fact that there are a number of property owners.

The Open Space requirements and guidelines are provided on pages 2-11 thru 2-14 of the Specific Plan. The public had opportunities to provide input in the preparation of the Specific Plan. The public will have the opportunity to comment at public hearings before the Planning Commission and Town Council regarding the proposed development applications’ approach to providing open space. The Planning Commission and Town Council consider all public comments in their deliberations.

The Town currently provides for non-discretionary review of new second units in Town. In addition, there are properties with multi-family zoning within the Town for new condominium or apartment developments.

The Advisory Committee, Planning Commission, and Town Council carefully considered building heights in the preparation of the Specific Plan. As a result, the adopted Specific Plan contains maximum heights in Section 2.5.2, which provides direction as to building height and reduces the permitted building heights along the existing street frontages on Lark Avenue and Los Gatos Boulevard.

To maintain an adequate Housing Element under State law, the Planning Commission would need to recommend and Town Council would need to zone replacement site(s) for the 270 units. During the preparation of the Housing Element, a community Advisory Board considered a variety of potential sites, which could potentially be re-examined as well as new locations. All of the Housing Element Advisory Board’s deliberations and work is available here.

The EIR has been certified as being consistent with State law. The State law pertaining to concessions is complex and is related to an applicant’s request for a density bonus. Under this law, if the application meets the affordability requirements, the Town must provide reasonable concessions.

The Specific Plan is a stand-alone policy document, consistent with the Town’s General Plan. Consistent with State law, the Town adopted amendments to the General Plan to reflect the major features of the Specific Plan. The Specific Plan helps implement the General Plan.

The Specific Plan does not define a senior citizen, however, most senior housing developments in California are intended for persons 55 years and older. For purposes of a development application, the applicant has the discretion to define the population(s) it intends to serve. Parking is often reduced in affordable senior developments.

The Specific Plan in Section 1.5.2 states that “the Specific Plan incorporates and/or complements the concepts and guidelines from the Los Gatos Boulevard Plan where applicable.” The North 40 Specific Plan Area is not subject to the Los Gatos Boulevard Plan, however, the community-based Advisory Committee considered the Boulevard Plan in the preparation of the Specific Plan.